Section 8 Fair Market Rent (FMR) for ZIP 37939 - 2027
Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
To determine if you should buy in ZIP code 37939 for Section 8 investments, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $1280 cover your debt service?
- Yes: Proceed to the next question. The FMR sets the maximum rental subsidy amount that can be paid to landlords in this area.
- No: Do not invest in this ZIP code. The rental income from a Section 8 tenant will not be sufficient to meet your mortgage payments and other financial obligations.
- 2) How does the market rent compare to the FMR?
- Market rent is above $1280: It depends. While the market rent is higher, Section 8 tenants can only pay up to the FMR. Consider if you can find properties where the rent is closer to the FMR to maximize occupancy rates.
- Market rent is at or below $1280: Yes. This means that the rental income from a Section 8 tenant will match or exceed the typical market rate, making the investment more attractive.
- 3) Is there enough demand in the form of renters and days on market (DOM)?
- Renters make up a significant portion of the population and DOM is low: Yes. A high percentage of renters indicates strong demand, while a low DOM suggests that rental units are filling quickly, which is favorable for Section 8 investments.
- Renters are few and DOM is high: No. Low demand and slow turnover indicate that it may be difficult to find tenants, even for Section 8 properties.
- It depends: If the percentage of renters is moderate and DOM is average, then the attractiveness of the ZIP code for Section 8 investments hinges on other factors such as the cost of the property, local competition, and the overall economic conditions.
Note: Specific percentages and DOM figures were not provided for ZIP 37939, so precise evaluations cannot be made without additional data.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.